Warren Buffett Quotes

The real key to making money in stocks is not to get scared out of them.

The very first stock I bought right out of college was Berkshire Hathaway.

Our belief is that it is a basket of well-diversified companies that are playing the Internet, but are not direct Internet companies.

I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.

The only way one should buy stocks is if you understand the underlying business. You stay within the circle of competence. You buy businesses you understand.

Invest in good, solid companies in good sectors.

If Warren Buffett could change his mind about investing in airlines, Mohnish Pabrai could change his mind about investing in autos. Pabrai, who has modeled his investment career and fee structure after Buffett's original partnership, counts General Motors, Fiat Chrysler, and Ferrari in his highly concentrated portfolio.

There's no use diversifying into unknown companies just for the sake of diversity. A foolish diversity is the hobgoblin of small investors. That said, it isn't safe to own just one stock, because in spite of your best efforts, the one you choose might be the victim of unforeseen circumstances. In small portfolios, I'd be comfortable owning between three and ten stocks.

Diversification may preserve wealth, but concentration builds wealth.

Owning stocks is like having children - don't get involved with more than you can handle.

If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume.

Risk can be greatly reduced by concentrating on only a few holdings.

Optimization tells us precisely how to diversify the portfolio, whether I should have 12% in semiconductors or 4% in biotech, etc., and it literally tells me how to diversify not only the industry groups but the stocks.

I want attractive stocks that will benefit from persistent institutional buying pressure.

Both cheap value stocks and more glamorous growth stocks can work well in a portfolio - if done right.

Buy into good, well-researched companies and then wait. Let's call it a sit-on-your-hands investment strategy.

Well, I think the secret is if you have a lot of stocks, some will do mediocre, some will do okay, and if one of two of 'em go up big time, you produce a fabulous result. And I think that's the promise to some people.

I invest in funds myself even though I run my own fund for my daughters.

It's easy to buy. Prove that you bought at the right time and the right price.

I really did believe that the most successful investments were the ones that you could own for the long run.

I've always loved to play games, and face it: investing is one big game. You need to be decisive, open-minded, flexible and competitive.

I don't think that's changed at all. I think there are a thousand stocks out there that could make you rich, totally independent of what you do for a living.

I almost always recommend investors get fully invested, since it's better to put your money to work than to let it simply track the rate of inflation.

It's OK to have your eggs in one basket as long as you control what happens to that basket.

Investing is for wealth preservation, not wealth creation, so first you have to make wealth.